“You neglected to report the current value. No advice can be valid unless that is known.”
Somewhere along the way I reported conservatively 90k in equity. I paid $192k for it four years ago. A couple houses near me have sold in the last year, my best guesstimate of value is $200k. (I’ve put over $30k into it).
Great, that eliminates the possibility of the lender requiring you to pay for mortgage insurance. There is no need to re-finance in a rush.
Do you have any high interest rate credit card or other debt? You sound disciplined enough to borrow only what is required to pay the amount owned on the older loan. However, you can borrow a bit more, don’t get carried away, and pay off other debts but you will be paying interest on the amount for the duration of the new loan. You can refinance for 30 years and still pay it off at a faster rate. Make sure any new loan is assumable should you find the need to sell.
I am in the same boat. I called my current mortgage company last night and was offered a rate of 4.875 with an APR of 5.22. Today, I see on their website that the rate has dropped again.
I will be combining a primary mortgage with a balance on a home-equity line of credit. The HELOC rate is currently very low, but I am nervous and would rather lock it in at a fixed rate than gamble.
I plan to watch the rates until the disclosure forms arrive, and then decide whether to sign or haggle for a better rate.